Final exam definitions
Final exam definitions MKTG 2101 - 005
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MKTG 2101 - 005
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This 24 page Study Guide was uploaded by Roberto Pelucarte on Saturday December 12, 2015. The Study Guide belongs to MKTG 2101 - 005 at Temple University taught by Craig Atwater (P) in Fall 2015. Since its upload, it has received 217 views. For similar materials see MARKETING MANAGEMENT in Marketing at Temple University.
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Marketing 2101 Exam 1 Definition: Chapter 1 : Consumer: The ultimate user good or service. Marketing : The activity, set of institutions, and processes for creating, communicating, delivering , and exchanging offering that have value to customers, clients, partners, and society at large. Marketing Mix: A combination of the product itself the price of the product, the promotional activities that introduce it and the place where it is made available, that together create a desired response among a set of predefined consumers. Four Ps : Product, Price, Promotion and Place Product : A tangible good, service, idea, or some combination of these that satisfy consumer of business customer needs through the exchange process; a bundle of attribution including features, functions, benefits, and uses. Promotion : The coordination of a marketers communication efforts to influence attitudes or behavior. Place: The availability of the products to the customer at the desired time and location. Price: The assignment of value, or the consumer must exchange to receive the offering. Exchange: The process by which some transfer of value occurs between a buyer and a seller. Business-to-business marketing : The marketing if goods or organizations buy for further processing or for their own when they do business. e-Commerce: The buying or selling of goods and services electronically, usually over the internet. Marketing concept: A management orientation that focuses on identify and satisfy consumer needs to ensure the organizations long-term profitability. Need: The recognition of any difference between a consumers actual state and some ideal or desired state. Want: The desire to satisfy needs in specific ways that are culturally and socially influenced. Benefit: The outcome sought by a customer that motivates buying that satisfies need or want. Demand : Customer desires for products coupled with the resources needed to obtain them Market: All the customer and potential customers who share a common need that can be satisfy by a specific product, who are willing to make the exchange and who have the authority to make the exchange. Marketplace: Any location or medium used to conduct an exchange. Market offerings : Some combination of product, service, experience, and information MKTG 2101: Marketing Management 1 10.26.2015 Utility: The usefulness or benefit that consumers receive from a product. Stakeholders: Buyers, sellers, or investors in a company; community residents: and even citizens od te nation where goods and services are made or sold-in others words, any person or organization that has a “stake” in the outcome. Production orientation : A management philosophy that emphasizes the most efficient ways to produce and distribute products. Selling orientation: A management view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory. Societal marketing concept: A management philosophy that marketers must satisfy customers needs in ways that also benefit society and also deliver profit to the firm. Sustainability: A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generation to meet their needs. Value proposition : A marketplace offering that fairly and accurately sums up the value that will be realized if the good or services is purchases. Lifetime value of the customer: The potential profit a single customers purchase of a firm products generates over the customer lifetime. Metrics: Measurements or “scorecards” that marketers use to identify the effectiveness of different strategies. Market segment: A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customer in the larger market Target market: The market segments, on which an organization focuses its marketing plan and toward which it directs its marketing efforts. Chapter 3 Business planning: An ongoing process of making decision that guides the firm both in the term and in the long term Business plan: A plan that includes the decision that guide the entire organization Marketing plan: A document that describes the marketing environment, outlines the marketing objectives, and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy Strategy: Basic, long-term goals and objectives Strategic planning: Strategic fit: Matching resources and capacity to ger the goal Strategic business units (SBUs) : Individual units within the firm that operate like separate businesses, with each having its own mission , business objectives, resources, managers and competitors. Mission statement: A formal statement in an organizations strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customer, products, and resources. MKTG 2101: Marketing Management 2 10.26.2015 Situational analysis: An assessment of a firms internal and external environments Internal environment: The controllable elements inside an organization, including its people, its facilities, and how it’s does thing that influence the operations of the organization External environment: The uncontrollable elements outside an organization that may affect its performance either positively or negatively SWOT analysis: An analysis of an organization strengths and weaknesses and the opportunities and threats in its external environment. Business portfolio : The group of different products or brands owned by an organization and characterized by different income generating and growth capacities Portfolio analysis: A management tool for evaluating a firms business mix and assessing the potential of an organizations strategic business units BCG growth-market share matrix: A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest ir new products. Stars: With a products that have dominant markets share in a high growth markets Cash cows: With a dominant market share in a low growth potential market Question marks: With low market shares in fast growth markets Dogs: With a small share of a slow growth markets. They are businesses that offer specialized products in limited markets that are not likely to growth quickly. Market penetration strategies : Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in server markets Market development strategies: Introduce existing products to new markets Product development strategies: Create growth by selling new products in existing markets Diversification strategies: Emphasize both new products and new markets to archive growth Chapter 4 Marketing Information System (MIS): A process that determine what information marketing managers need and then gathers, sorts, analyzes, stores, and distribute relevant and timely marketing information to system users Market intelligence system: A method by which marketers get information about everyday happening in the marketing environment. Market research: The process of collecting analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness. Data: Raw: unorganized that need to be processed. MKTG 2101: Marketing Management 3 10.26.2015 Information: Interpreted data. Customer insights: The collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain their customer. Research design : A plan that specifies what information marketers will collect and what type of study they will do. Secondary data: Data that have been collected for some purpose other than problem at hand. Primary data: Data from research conducted to help make a specific decision. Exploratory research: A technique that marketing use to generate insight for future, more rigorous studies. Interview: Guided, one on one discussion with a trained interviewer Focus group: A product-oriented discussion among a small group of consumers led by a trained moderator. Ethnography: An approach to research based on observations of people in their own homes or communities Descriptive research: A tool that probes more systematically into the problem and bases its conclusion on large numbers of observations. Causal research: A technique that attempts to understands cause-and-effect relationships. Experiments: A technique that tests predicted relationship among variables in a controlled environment. Neuromarketing: A type of brain research that uses technologies such as function magnetic resonance imaging (fMRI) to measure brain activity to better understand why consumers make the decisions they do. Validity: The extent to which research actually measures what it was intended to measure. Reliability: The extent to which research measurement techniques are free of errors. Representativeness : The extent to which consumers in a study are similar to a large group in which the organization has in interest. Sampling: The process of selecting respondents for a study. Probability sample: A sample in which each member of the population has some know chance of being included. Nonprobability sample: A sample in which personal judgment is used to select respondents Convenience sample: A nonprobability sample composed of individuals who just happen to be available when and where the data are being collected0 Chapter 5 Customer Relationship Management (CRM): A systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual unique wants and needs. MKTG 2101: Marketing Management 4 10.26.2015 One-to-one marketing: Facilitated by CRM, one-to-one marketing allows for customization of some aspect of the goods or services that are offered to each customer. Touchpoint: Any point of direct interface between customers and a company (online, by phone, or in a person) Share of customer : The percentage of an individual customers purchases of a product that is a single brand. Customer equity: The financial value of a customer throughout the lifetime of the relationship. Big data: A popular term to describe the exponential growth of data-both structured and unstructured-in massive amount that are hard or impossible to process using traditional databases techniques. Internet of Things: Describe a system which everyday objects are connected to the internet and in turn are able to communicate information throughout an interconnected system. Scanner data: Data derived from items that are scanned at the cash register when you check out with your loyalty card. Data mining: Sophisticated analysis techniques to take advantages of the massive amount of transaction information now available. Reality mining: The collection and analysis of machine-sensed environmental data pertaining to human social behavior with goal identifying predictable patterns of behavior Marketing analytics: A group of technologies and processes that enable marketers to collect measure, analyze, and asses the effectiveness of marketing efforts. Predictive analytics: Uses large quantities of data within variables that have identified relationships to more accurately predict specific future outcomes. Marketing metrics: Specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels and, when appropriate serve as a control mechanism. Chapter 6 Consumer behavior :The process involved when individuals or group select, purchase, use, and dispose if goods, services, ideas, or experiences to satisfy their needs and desires, Involvement: The relative importance of perceived consequences of the purchase to a consumer. Problem recognition: The process that occurs whenever the consumer sees a significant different between his current state of affairs and some desired or ideal state; this recognition initiates the decision-making process. Information search: The process whereby a consumer searches for appropriate information to make a reasonable decision. Evaluation criteria: The dimensions consumers use to compare competing product altenatives. MKTG 2101: Marketing Management 5 10.26.2015 Heuristics: A mental rule of thumb that leads a speedy decision by simplifying the process. Brand loyalty: A pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, based on the belief that the brand makes products superior to those its competition. Consumer satisfaction/ dissatisfaction: The overall feelings or attitude a person has about a product after purchasing it. Cognitive dissonance: The anxiety or regret a consumer may feel after choosing from among several similar attractive choices. Perception: The process by which people select, organize, and interpret information from the outside world. Exposure: The extent to which a stimulus is capable of being registered persons sensory receptiors. Attention: The extent to which a person devotes mental processing to a particular stimulus. Interpretation: The process of assigning meaning to a stimulus based on prior associations a person has with it and assumptions he or she makes about it. Motivation: An internal state that drives us to satisfy needs by activating goal-oriented behavior. Learning: A relatively permanent change behavior caused by acquired information experience. Attitude: A learned predisposition to respond favorably or unfavorably to stimuli on the basis if relatively enduring evaluation of people, objects, and issues. Cognition: The knowing component of attitudes , refers to the beliefs or knowledge a person has about a product and its important characteristics Behavior: The doing component of attitudes, involves a consumers intention to do something , such as the intention to purchase or use a certain product. Personality: The set of unique psychological characteristics that consistently influences the way a person responds to situation in the environment Family life cycle: A means of characterizing consumers within a family structure on the basics of different stages through which people pass as they grow older Lifestyle: The pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Psychographics: The use of psychological, sociological, and anthropological factors to construct market segments. Culture: The values, beliefs, customs, and tastes a group of people values. Subculture: A group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences. Reference group: An actual imaginary individual or group that has significant effect on an individuals evaluations, aspirations, or behavior. MKTG 2101: Marketing Management 6 10.26.2015 Opinion leader: A person who is frequently able to influence others attitudes or behaviors by virtue of his or her active interest and expertise in-one or more product categories. Gender roles : Society’s expectation regarding the appropriate attitudes, behaviors and appearance for men and women. Business-to-business (B2B) markets: The group of customers that include manufactures wholesale Organizational markets: Another name for business-to business Derived demand : Demand for business or organizational products caused u demand for Inelastic demand : Demand which change in price have little or no effective on the amount Producers : The individual or organization that purchase products for use in the production of other goods and services. Resellers : The individuals or organizations that buy finished goods for the purpose of reselling renting, or leasing to others to make a profit and to maintain their business operations. Government markets: The federal, state, county, and local government that buy goods and services to carry our public objective and support their operations. Straight rebuy: A buying situation in which business buyers make routine purchases that require minimal decision making. Modified rebuy: A buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making. New-task buy: A new business-to- business purchase that is complex or risky and that requires extensive decision making. Buying center: The group of people in an organization who participate in a purchasing decision. Product specifications: A written description of the quality, size, weight, and other details required of a product purchase Outsourcing : The Business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in-house Offshoring: A process by which companies contract with companies or individuals in remote places ike China or India to perform work they used to do at home, Crowdsourcing: A practice where firms outsource marketing activities (such as selecting an ad) to a community of users Business-to-business (B2B) e-commerce: On-line exchange between companies and individual consumers Chapter 7: Market fragmentation: The creation of many consumer groups due to a diversity of distinct needs and wants in modern society. MKTG 2101: Marketing Management 7 10.26.2015 Target market strategy: Segmentation: The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics. Segmentation variables: Dimension that divide the total market into fair homogeneous group, each with different needs and preferences. Demographics : Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure Cultural diversity: A management practice that actively seeks to include people of different sexes, races, ethnic groups and religion in an organizations employees, customers, suppliers, and distribution channel partners. Geographic segmentation: Approach in which marketers tailor their offering to specific geographic areas because peoples preferences often vary depending on where they live. Geodemography: A segmentation technique that combines geography with demographics Micromarketing : The ability to identify and target very small geographic segments that sometimes amount to individuals Psychographics: The use of psychological, sociological, and anthropologic factors to construct market segment VALS: A psychographic system that divides the entire US population into eight segment Behavioral segmentation: A technique that divides consumers into segments on the basis of how they act towards, feel about, or use a good or service. Usage status: 80/20 rule Usage rate: A measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service. Usage occasions: An indicator used in behavioral market segmentation based on when consumers use a product most Targeting: A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers Target market: The market segment on which an organization focuses its marketing plan and toward which it directs its marketing efforts. Segment profile: A description of the “typical” customer in a segment Undifferentiated targeting strategy : appealing to a brand spectrum of people MKTG 2101: Marketing Management 8 10.26.2015 Differentiated targeting strategy : Developing one or more products for each of several distinct customer groups and making sure these offering are kept separate in the marketplace Concentrated targeting strategy : Focusing a firms efforts and offering one or more products to a single segment Customized marketing strategy: An approach that tailors specific products and the message about them to individual customer Mass customization: An approach that modifies a basic good or service to meet the needs of an individual Differentiation: A marketing process that showcases the differences between products. Competitive advantage: is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher Positioning: Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition Repositioning : Redoing a products position to respond to marketplace change Perceptual map: A technique to visually describe where brands are “located” in consumer minds relative to competing brands. Chapter 8: Attributes: Includes features, functions, benefits, and uses of a product. Marketers view products as a bundle of attribute that includes the packaging, brand name, benefits, and supporting features in addition to a physical good Good: A tangible product that we can see, touch, smell, hear, or taste. Core product: All the benefits the product will provide for consumer or business customers Actual product: The physical good or the delivered service that supplies the desired benefit Augmented product: The actual product plus other supporting features such as a warranty, credit, delivery, installation. And repair service after the sale Durable goods: Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances. Nondurable goods: Consumer products that provide benefits for a short time because they are consumed or are no longer useful MKTG 2101: Marketing Management 9 10.26.2015 Convenience product: A consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum comparison and effort. Equipment: Expensive goods that an organization uses in its daily operations that last for a long time Raw materials: Product of the fishing, agricultural, and mining industries that organizational customers purchase to use in their finished products Innovation: A product that consumers perceive to be new and different from existing products Continuous innovation: A modification of an existing product that sets one brand apart from its competitors Knockoff: A new product that copies, with slight modification, the design of an original product Dynamically continuous innovation : A change in a existing product that requires a moderate amount of learning or behavior change Discontinuous innovation : cause a paradigm shift in science or technology and/or the market structure of an industry Research & Development (R&D) : Investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures. New product development: The phases by which develop new products, including idea generation, product concept development and screening, marketing strategy development, business analysis. Technical development, test marketing, and commercialization Idea generation: A phase of product development in which marketers use variety of sources to come up with great new product ideas that provide customer benefits and that are compatible with the company mission Product concept development & screening: The second step of product development in which marketers test product idea for technical and commercial success Business analysis: The step in the product development process in which marketers assess a product commercial viability Technical development : The step in the product development process in which company engineers refine and perfect a new product Test marketing : Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter. MKTG 2101: Marketing Management 10 10.26.2015 Simulated (virtual) test marketing: Application of specific computer software to imitate the introduction of a product into the marketplace allowing the company to see the likely impact of price cuts and new packaging or even to determine where in the store it should try to place the product Commercialization: The final step in the product development process in which a new product is launched into the market Product adoption : The process by which a consumer or business customer begins to buy and use a new good, service, or idea Diffusion : The process by which the use of a product spreads throughout a population. Innovators: The first segment of population to adopt a new product ( roughly 2.5 percent) Early adopters: Those who adopt an innovation early in the diffusion but after the innovators Early majority : Those whose adoption of a new product signals a general acceptance of the innovation Late majority : The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase Laggards: The last consumer to adopt an innovation Chapter 9: Product line : A firms total product offering designed to satisfy a single need or desire of target customer Product line length: Determine by the number of separate items within the same category Stock-keeping unit : A unique identifier for each distinct product Cannibalization : The loss of sales of an existing brand when a new item in a product line or product family is introduced Product mix : The total set of all products a firm offer for sale Product mix width : The number of different product lines the firm produces Product life cycle : A concept that explains how products go through four distinct stages: from birth to death, introduction, growth, maturity and decline Introduction stage : The first stage of the product life cycle, in which slow growth follows the introduction of a new product in the marketplace MKTG 2101: Marketing Management 11 10.26.2015 Growth stage: The second stage in the product life cycle, during which consumers accept the product and sales rapidly increase Maturity stage : The third and longest stage in the product life cycle, during which sales peak and profit margin narrow Decline stage: The final stage in the product life cycle, during which sales decrease as customer needs change Brand : A name, a term, a symbol, or any other unique of a product that identifies one firms products and sets it apart from the competition Trademark : The legal term for a brand name, brand marl, or trade character, trademarks legally registered by a government obtain for exclusive use in that country Line extensions: is the use of an established product brand name for a new item in the same product category Brand extensions : A new product sold with the same brand name as a strong existing brand Multibranding : Marketing of two or more similar and competing products by the same firm under different and unrelated brands Chapter 10 : Price : The assignment of value, or the amount the consumer must exchange to receive the offering Market share: The process of collecting, analyzing, and interpreting data about customer, competitors, and the business environment in order to improve marketing effectiveness Prestige products : Products that have a high and that appeal to status- conscious consumers. Price elasticity of demand: The percentage change in unit sales that results from a percentage change in price. Elastic demand: Demand in which changes in price have large effects on the amount have demanded. Inelastic demand : Demand in which changes in price have little or no effect on the amount demanded Variable costs : The cost of production (raw and processed materials, parts, and labor) that are tied to and vary, depending on the number of units produced. MKTG 2101: Marketing Management 12 10.26.2015 Fixed costs : Costs of production that don’t change with the number of units produced Markup : An amount added to the cost of a product to create the price at which a channel member will sell the product Gross margin : The markup amount added to the cost of a product to cover the fixed costs of the retailer or wholesale and leave an amount for a profit List price or Manufacturer’s suggested retail price (MSRP) : The price that the manufacturer sets as the appropriate price for the end consumer to pay Cost-plus pricing: A method of setting prices in which the seller totals all the costs for the product and them adds an amount to arrive at the selling price Demand-based pricing : A price- setting method base on estimates of demand at different prices Yield management pricing: A practice of charging different prices to different customers in order to manage capacity while maximizing revenues Value pricing: The setting of a product or service's price, based on the benefits it provides to consumers. Everyday Low Pricing (EDLP) : is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping. Skimming price: A very high, premium price that a firm charges for its new, highly desirable product Penetration pricing: A pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it. Optional product pricing : Price bundling: Selling two or more goods or services as a single package for one price Captive pricing: A pricing tactic for two items that must be used together, one item is prices very low, and the firm makes it profits on another By-product pricing: By product is something which is produced as a result of producing something else ( the main product). Usually, the byproducts are disposed off and have little value FOB origin pricing: A pricing tactic in which the cost of transportation the product from the factory to the customer’s location is the responsibility of the customer Uniform delivered pricing: A pricing tactic in which a firms adds a standard shipping charge to the price for all customers regardless of location MKTG 2101: Marketing Management 13 10.26.2015 Freight absorption pricing : Designed areas where foreign companies can warehouse good without paying taxes or customs duties until they move the goods into the marketplace. Trade discounts: Discounts off list price of products to members of the channel of distribution who perform various marketing function Quantity discounts: A pricing tactic of charging reduced prices for purchases of large quantities of product Cash discounts: A discount offered to a customer to entire them to pay their bill quickly Seasonal discounts: Price reduction offered only during certain times of the year Dealer or promotional allowances : A controlled, integrated program of communications methods and materials designed to present a company and its products to prospective customers; to communicate need-satisfying attributes of products toward the end of facilitating sales and thus contributing to long-run profit performance. Segmented pricing: A situation that occurs when a company sets more than one price for a product without experiencing significant differences in the costs of producing or distributing the product. Dynamic pricing: Dynamic pricing, also called real-time pricing, is an approach to setting the cost for a product or service that is highly flexible. Internal reference price: A set price or a price range in consumers’ minds that they refer to in evaluating a product price Price lining or Product line pricing : The practice of setting a limited number of different specific prices, called price points, for items in a product line Odd-even pricing: Psychological pricing method based on the belief that certain prices or price ranges are more appealing to buyers. This method involves setting a price in odd numbers (just under round even numbers) such as $49.95 instead of $50.00. Bait-and-switch : An illegal marketing practice un which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher-price item. Loss leader pricing: The pricing policy of setting prices very low or even below cost to attractcustomers into a store Price fixing : The collaboration of two or more firm in setting prices, usually to keep prices high MKTG 2101: Marketing Management 14 10.26.2015 Predatory pricing: An illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business Chapter 11 Physical distribution: The activities that move goods from manufacturers to final customer, including order processing, warehousing, materials handling, transportation, and inventory control. Channel of distribution: The series of firms or individuals that facilitates the movement of a product from the producer to the final consumer. Channel intermediaries: Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. An older term for intermediaries is middlemen. Breaking bulk: Dividing larger quantities of goods into smaller lots in order to meet the needs of buyers. Create assortment: To provide a variety of products in one location to meet the needs of buyers Corporate VMS: A vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operation. Transportation and storage: Occurs when retailers and other channel members move the goods from the production point to other location where they can hold them until consumers want them. Facilitating functions: Functions of channel intermediaries that make the purchase process easier for customers and manufactures. Risk-taking functions: The chance retailers take on the loss of a product when they buy a product from a manufacturer because the product sits on the shelf because no customer want it. Communication & transaction functions: Happens when channel members develop and execute both promotional and other types of communication among members of the channel. Disintermediation: The elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel. Wholesaling intermediaries: Firms that handle the flow of products from the manufacturer to the retailer or business user. Independent intermediaries: Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufactures and many different customers. Merchant wholesalers: Intermediaries to buy goods from manufacturers (take title to them) and sell to retailers and other B2B customers. Take title: To accept ownership of a product and assume the accompanying rights and responsibilities of ownership. MKTG 2101: Marketing Management 15 10.26.2015 Full-service merchant wholesalers: Wholesalers that provide a wide range of services for their customers, including delivery, credit, product-use assistance, repairs, advertising, and other promotional support. Limited-service merchant wholesalers: Wholesale that provide fewer services for their customer Merchandise agents or brokers: Channel intermediaries that provide services in exchange for commission but never take to the product. Channel levels: The number of distinct categories of intermediaries that make up a channel of distribution. Dual or multiple distribution systems: A system where producers, dealers, wholesaler, retailers, and customers participate in more than one type of channel. Slotting allowance: A fee paid in exchange for agreeing to place a manufactures products on a retailer’s valuable shelf space Distribution intensity: The number of intermediaries at each level of the channel. Conventional marketing system: A multiple-level distribution channel in which members work independently of one another Vertical marketing system: A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels. Corporate VMS: A vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations. Contractual VMS: A vertical marketing system in which cooperation is enforced by contracts (legal agreements) that spell out each member’s rights and responsibilities and how they will cooperate Retailer cooperative: A group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chain. Franchise organizations: A contractual vertical marketing system that includes a franchise (a manufacturer or a service provider) who allow an entrepreneur (the franchise) to use the franchise name and marketing plan for a fee. Horizontal marketing system: A arrangement within of distribution in which two or more firms at the same channel level work together for a common purpose. Intensive distribution: Selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product. Exclusive distribution: Selling a product only through a single outlet in a particular region. Selective distribution: Distribution using few outlets than intensive distribution more than exclusive distribution. Channel conflict: Incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacture distribution strategy MKTG 2101: Marketing Management 16 10.26.2015 Logistics: The process of designing, managing, and improving the movement of products through the supply chain. Logistics include purchasing, manufacturing, storage, and transportation. Reverse logistics: Includes product returns, recycling and material reuse, and waste disposal. Warehousing: Storing goods in anticipation of sale or transfer to another member of the channel of distribution; Transportation: The mode by which products move among channel members Inventory control: Activities to ensure that goods are always available to meet customers’ demands Radio frequency identification (RFID): Chips are electronic tags or labels that can be embedded within packages or items and are used to identify items even when hidden in the back of a stockroom or high on a shelf. Stock-outs: Zero-inventory situation resulting in lost sales and customers dissatisfaction Just-in-time (JIT) : Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels an ensure that deliveries from suppliers arrive only when needed Supply chain: All the activities necessary to turn raw materials into a good or service and put it in the hands of the consumers or business customer Supply chain management: The management of flows among firms in the supply chain to maximize total profitability. Chapter 12 Retailing: The final stop in the distribution channel in which organizations sells goods and services to consumer for their personal use. Merchandise mix: The total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups. Supercenters: Large combination stores that combine economy supermarkets with other lower priced merchandise Convenience stores: Neighborhoods retailers that carry a limited number of frequently purchased items and cater to consumers willing to pay a premium for the ease of buying close to home. Supermarkets: Food stores that carry a wide selection of edibles and related products Box Stores: Food stores that have a limited selection of items few brands per items, and few refrigerated items. Specialty stores: Retailers that carry only a few product lines but offer good selection within the lines that they sell. Category killers: A very large specialty store that carries a vast selection of products in its category. Variety stores: Stores that carry a variety of inexpensive items MKTG 2101: Marketing Management 17 10.26.2015 Off-price retailers: Retailers that buy excess merchandise from well-known manufactures and pass the saving on to customers Warehouse clubs: Discount retailers that charge a modest membership fee to consumers who buy a broad assortment of food and nonfood items in bulk and in a warehouse environment. Factory outlet store: A discount retailer, owned by a manufactures that sells off defective merchandise and excess inventory Department stores: Retail that sell a broad range of items and offer a good selection within each product line. Hypermarkets: Retailers with the characteristics of both warehouse stores and supermarkets: hypermarkets are several times larger than others stores and offer virtually everything from grocery items to electronics Non-store retailing: Any method used to complete an exchange with a product user that does not require a customer visit to a store Direct selling: An interactive sales process in which salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise Party plan system: A sales technique that relies heavily on people getting caught up in the group spirit, buying things they would not normally buy if they were alone Multilevel or network marketing: A system in which a master distributor recruits other people to become distributors, sells the company’s product to the recruits, and receive a commission on all the merchandise sold by the people recruited Services: Intangible products that are exchanged directly between the producer and the customer Disintermediation: The elimination of some layers of the channel of distribution in order to cut cost and improve the efficiency of the channel Place marketing: Marketing activities that seek to attract new businesses, residents, or visitors to a town, state country, or some other site Idea marketing: Marketing activities that seek to gain market share for a concept, philosophy, belief, or issue by using elements of the marketing mix to create or change a target markets attitude or behavior Ch 13 Integrated marketing communication: A strategic business process that marketers use to plan, develop, execute, and evaluate coordinate, measurable, persuasive brand communication programs over time to targeted audience. Word-of-mouth communication: When consumers provide information about to other consumers Communication model: The process whereby meaning is transferred from to a receiver MKTG 2101: Marketing Management 18 10.26.2015 Source: An organization or individual that sends a message Encoding: The process of translating an idea into a form of communication that will convey meaning Message: The communication in physical that goes from a sender to a receiver Medium: A communication vehicle which a message is transmitted to a target audience Receiver: The organization or individual that intercepts and interprets the message Decoding: The process by which a receiver assign meaning to the message Noise: Anything that interferes with effective communication Feedback: Receivers reactions to the message Promotion mix: The set of all products a firm offers for sale Mass communication: Relates to TV, radio, magazines, and newspapers Percentage-of-sales method: A method for promotion budgeting that is based on a certain percentage of either last year’s sales or estimates of the present years sales. Competitive-parity method: A promotion budgeting method in which an organization matches whatever competitors are spending Objective-task method: A promotion budgeting in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet these goals. Advertising: Nonpersonal Communication from an identified sponsor using the mass media. Advertising campaign: A coordinated, comprehensive plan that carries out promotion objectives an results in a series of advertisement placed in media over a period of time. Limited-service agency: An agency that provides one or more specialized services, such as media buying or creative development User-generated content: Online consumer comments, opinions, advice and discussions, reviews, photos, images, videos, podcast, webcast, and product, related stories available to other consumers. Creative strategy: The process that turns a concept into an advertisement Advertising appeal: The central idea or theme of an advertising message. Unique selling proposition: An advertising appeal that focuses on one clear reason why a particular product is superior Reminder advertising: Advertising aimed at keeping the name of brand in people’s minds to be sure consumers purchases the product as necessary Execution format: The basic structure the message, such as comparison, demonstration, testimonial, slice of life, and lifestyle Tonality: The mood attitude the message conveys (straightforward, humor, dramatic, romantic, sexy, and apprehension/ fear Pretesting: A research method that seeks to minimize mistakes by getting consumer reactions to ad message before they appear in the media. MKTG 2101: Marketing Management 19 10.26.2015 Media planning: The process of developing media objectives, strategies, and tactics for use in an advertising campaign. Digital media: Media that are digital rather analog, including websites, mobile or cellular phones, and digital video, such as YouTube Owned media: Internet sites, such as websites, blogs, Facebook, and Twitter accounts, that are owned by an advertiser. Paid media: Internet media, such as display ads, sponsorship, and key word searches, that are paid for by an advertiser Earned media: Word-of-mouth or buzz using social media where the advertiser has no control Banners: Internet advertising in the form of rectangular graphics at the top or bottom of web pages. Pop-up ad: An advertisement that appears on the screen while a Web page loads or after ir has loaded. Search engines: Internet programs that search for documents with specific key words. Mobile advertising: A form of advertising that is communicated to the consumer via a handset. Media schedule: The plan that specifies the exact media to use and when to use it. Reach: The percentage of the target market that will be exposed to the media vehicle. Frequency: The average number of times a person in the target group will be exposed to the message Post testing: Research conducted on consumer’s responses to actual advertising message they have seen or heard. Sales promotion: Program designed to build interest in or encourage purchases a product during a specified period. Unaided recall: A research technique conducted by telephone survey or personal interview that asks whether a person remembers seeing an ad during a specific period without giving the person the name of the brand: Aided recall: A research technique that uses clues to prompt answers from people about advertisements they might have seen. Sales promotion: Programs designed to build interest in or encourage purchased a product during a specified period Rebates: Sale promotions that allow the customer to recover part of the products cost from the manufacture Premiums: Items offered free to people who have purchased a product Product sampling: Distribution free trial-size version of a product to consumers Trade sales promotions: Promotions that focus on members of the “trade”, which include distribution channel members, such as retail salespeople or wholesale distributors, that a firm much work in order to sell its products Merchandising allowances: Reimburses the retailer for in-store support of the product MKTG 2101: Marketing Management 20 10.26.2015 Promotional products: Goodies such as coffee mugs, T-shirts, and magnets given away to build awareness for a sponsor. Some freebies are intended for channel partners, such as retailers, and vendors. Point-of-purchase (POP) displays: In-store displays and signs Push money: A bonus paid by a manufacturer to a salesperson, customer, or distributor for selling its products. Chapter 14 Buzz: Word-to-mouth communication that customers view as authentic Viral marketing: Marketing activities that aim to increase brand awareness or sales by consumers passing a message along other consumers. Social media: Internet-based platform that allow users to create their own content and share it with others who access the site. Social networks: Online platforms that allow a user to represent him or herself via a profile on a website and provide and receive links to others members of the network to share input about common interests. Twitter: A free microblogging service that lets users post short text messages with a maximum of 14 characters Product review sites : Social media sites that enable people to post stories about their experiences with products and services. Direct marketing: Aby direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchases of a product. Catalog: A collection of products offered sale in book form, usually consisting of product descriptions accompanied by photos of the items. Telemarketing: The use of the telephone to sell directly to consumers and business customer. Direct-response advertising: A direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product. Direct-response TV (DRTV): Advertising on TV that seeks a direct response, including short commercials of less than two minutes, 30 minutes or longer infomercials, and home shopping networks. Infomercials: Half-hour or hour-long commercials that resemble a talk show, but actually are sales pitches. M-commerce: Promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such as smart phones and personal digital assistants. Personal selling: Marketing communication by which a company representative interacts directly with a customer or prospective customer to communicate about a good or MKTG 2101: Marketing Management 21 10.26.2015 service. New-business salesperson: The person responsible for finding new customers and calling on them to present the company’s products. Team selling: The sales functions when handled by a team that may consist of a salesperson, a technique specialist, and others. Transactional selling: A form of personal selling that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer. Relationship selling: A form of personal selling that involves securing, developing, and maintaining long-term relationships with profitable customers. Prospecting: A part of the selling process that includes identifying and developing a list of potential or prospective customers. Preapproach: A part of the selling process that includes developing information about prospective customers and planning the sales interview. Approach: The first step of the actual sales presentation in which the salesperson tries to learn more about customers needs, create a good impression, and build rapport Sales presentation: The part of the selling process in which the salesperson directly communicates the value proposition to the customers and invites two-way communication. Close: The stage of the selling process in which the salesperson actually asks the customer to buy the product Follow-up: Activities after the sale that provide important services to customers Public relations: Communication function that seeks to build good relationships with an organization publics, including consumers, stockholder, and legislators. Publicity: Unpaid communication about an organization that appears in the mass media. Crisis management: The process of managing a company’s reputation when some negative event threatens the organization image Public relations campaign: A coordinated effort to communicate with one or more of the firms publics Press release: Information that an organization distributes to the media intended to win publicity. Investor relations: PR activities such as annual and quarterly reports aimed at a firms investors. Lobbying: Talking with and providing information to government’s officials in order to influence their activities relating to an organization. Speech writing: Writing a speech on a topic for a company execute to deliver Corporate identity: Materials such as logos, brochures, building design, and stationery that communicate an image of the organization. Media relations: A PR activity aimed at developing close relationship with the media Special events: Activities-from a visit foreign investors to a company picnic- that are planned and implemented by a PR department. MKTG 2101: Marketing Management 22 10.26.2015 MKTG 2101: Marketing Management 23 10.26.2015 MKTG 2101: Marketing Management 24 10.26.2015
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